APPLICATION FOR ON E- AND TWO-ROOM HDB RENTAL FLATS (Waiting time)

Mr Liew Kok Pun asked the Minister for National Development (a) what is the estimated average waiting time now for new applicants of one- and two-room Housing and Development Board rental apartments; and (b) whether this waiting time will be shortened over the next two years when more HDB apartments are completed and, if so, by how much.

Mr Lee Yock Suan (for the Minister for National Development): Mr Speaker, Sir, on 3rd December last year, in answer to a similar question from the Hon. Member for Kampong Kembangan, I told this House that the waiting period for 1- and 2-room rental flats was estimated to be 1 1/2 - 2 years. Since then, there has been an increase in applications for 1- and 2-room rental flats. This increase was mainly caused by the transfer of a substantial number of 3-room applicants to the 1- and 2-room registers. The waiting times for rental flats will lengthen to two years for 1-room units and three years for 2-room units.

The waiting time for rental flats is not expected to be shortened over the next two years. This is because the HDB, in line with the Government's policy to encourage home ownership of flats, has ceased construction of new rental flats.

Mr Jeyaretnam: The Hon. Minister of State states that, in accordance with Government policy, HDB has ceased constructing 1-room and 2-room flats for rental. What is going to happen to the thousands of people who cannot afford to buy HDB flats at the prices that the HDB is selling as a result of their accounting?

Mr Lee Yock Suan: Sir, we can see that the Member is again harping on his old issues. There will be plenty of opportunity for him to raise these issues in the Committee of Supply when we will give him full answers to all the points.

As far as rental flats are concerned, especially 1-room and 2-room rental flats, he may not be aware that there are about 64,000 1-room rental flats and 44,000 2-room rental flats. This is more than ade- quate to meet the future demand and the policy of the Government is to encourage people to own their homes. We have found that the applicants who register to rent flats have generally income levels not much different from those who apply to buy flats. What they need to do is to perhaps cut down on smoking and drinking and so on. Then they will be able to afford and it will be in their long-term interest to purchase the flats.

Mr Jeyaretnam: I will ask the Hon. Minister of State not to be facetious. It is not a question of these people cutting down on smoking and drinking. They simply cannot afford to buy HDB flats at the prices they are being offered.

Mr Lee Yock Suan: Sir, this is a matter of opinion and we do have data to show the actual affordability of the flats.

Dr Augustine H.H. Tan (Whampoa): Sir, is it not true that over the next two years, as the newer flats are available for purchase, there will be substantial numbers moving from the 1- and 2-room flats into the purchase flats. These 1- and 2-room flats will be vacant and therefore available for the people that are waiting in the Member for Anson's constituency.

Mr Lee Yock Suan: Sir, it is indeed correct. In fact, of the people living in the 1-room and 2-room rental flats, there are about 15,700 applicants who are on the waiting list to purchase flats. These people will be getting their flats probably over the next two to three years, making their flats available to other applicants who need to rent flats.